[Public Papers of the Presidents of the United States: George H. W. Bush (1992-1993, Book II)]
[December 14, 1992]
[Pages 2185-2187]
[From the U.S. Government Publishing Office www.gpo.gov]



Remarks on Presenting the Malcolm Baldrige National Quality Awards
December 14, 1992

    Thank you, Secretary Franklin. And let me first recognize our 
Baldrige Foundation trustees, our private sector examiners and judges, 
and all those who coordinated this year's Baldrige Awards. Distinguished 
Members of Congress present, welcome. And also it's my special privilege 
to salute members of the Baldrige family who are with us today.
    I really do look forward, Barbara indicat-

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ed, to these yearly award ceremonies. It is an opportunity to honor the 
Nation's best and a chance to revisit the legacy of an extraordinary 
man, Malcolm Baldrige.
    I remember a story that President Reagan used to tell about Mac. He 
phoned him to ask him to join his Cabinet, and he was told by his wife, 
Midge, that he'd have to call back later. Mac was out on his horse 
roping and couldn't come to the phone. [Laughter]
    Well, I think everybody at Commerce who worked with this 
extraordinary man knows exactly that that's the way he was, a man whose 
collection of belt buckles was the only thing that could outnumber his 
many achievements. And in a hand-tooled western belt and a pinstriped 
suit, he was the Connecticut cowboy, a man whose name is now enshrined 
in the Cowboy Hall of Fame in Oklahoma and the only guy I know who'd 
complain of saddle sores from sitting around a desk too long. [Laughter]
    He used to say that the thing he liked about cowboys was that they 
didn't talk unless they had something to say, and when they said 
something, they meant it. And that was true of Mac Baldrige. And when he 
talked business, he meant business. When he talked of making America's 
products second to none, you listened. The standards of excellence that 
Mac embodied are still very much with us today. Fairness, honesty, 
tenacity: these were his yardsticks and the same yardsticks we use today 
in looking for the very best that American industry has to offer.
    This year we've found them in five exceptional companies. Ninety 
companies this year decided that they were tough enough to take the 
Baldrige tests. And it's estimated 175,000 others used these criteria, 
the Baldrige criteria, as an internal test, as a way to be tough on 
themselves. And a few of our past winners--and I come to mind Motorola 
and IBM--have even gone so far as to urge their suppliers to follow the 
Baldrige criteria. What this tells us is simple: America is number one 
because it demands not only the best for itself but also from itself.
    Now a comment on this year's winners. Some might think the Commerce 
Department offered a two-for-one deal with AT&T, but not so. Though both 
Transmission Systems and Universal Card Services are divisions of AT&T, 
they are two separate businesses who share one common goal, a commitment 
to quality. AT&T Chairman Robert Allen said of this commitment, ``The 
real challenge is to define quality not from our own perspective but 
from the customers'.'' And this, both divisions have done.
    Transmission Systems Business Unit dedicates itself not only to its 
customers' short-term needs but its long-term needs as well. With the 
input of more than 7,500 employees at 9 U.S. sites, Transmission Systems 
has initiated programs to predict what new technologies will be needed 
to meet their customers' long-term goals. In slightly more than 3 years, 
Transmission Systems has nearly doubled international sales and now 
sells systems to more than 50 countries. And that is a lot of satisfied 
customers.
    Universal Card Services hasn't become a benchmark of other companies 
by accident but by effort, top performances by all of its 2,500 
employees. And Universal Card led its charge to excellence by 
centralizing their business around one key principle: Delight the 
customer. And it seems they are, indeed, delighted. Ninety-eight percent 
of their customers rate overall services as better than the competition, 
98 percent. That's pretty good for a poll, and I could have used it 
about a month ago. [Laughter]
    It's not often that small business means big business. And it's true 
for the Granite Rock Company, another of our honorees. With the 
initiation of their total quality program, Granite Rock has exceeded its 
industry standards for high quality and unmatched service. And rather 
than follow a well-worn path, Granite Rock chose to chart its own way, a 
journey that's brought them here today, an award-winning company that 
defines success in three little words: Another satisfied customer.
    Ritz-Carlton: They won 121 quality-related awards in 1991. But ask 
any employee how they gauge their success, and they'll say, ``The Gold 
Standards,'' the Ritz-Carlton's bible for premium service. And with 
almost 12,000 employees, the Ritz-Carlton has 
implemented a rigorous quality pro-

[[Page 2187]]

gram that seeks a memorable visit for every guest. This luxury hotel 
business knows that a mint on the pillow isn't enough to keep a customer 
coming back. It's the principle ``Service must be excellent if it is 
anything'' that has earned Ritz-Carlton one of the most loyal followings 
in the travel and tourism industry.
    Now, for Texas Instruments Defense Systems and Electronics Group: 
Its best product is always surpassed by its next innovation. Mac used to 
call this kind of inventiveness Yankee ingenuity. I'm not sure this 
Texas-based company cottons to be called Yankee--[laughter]--but 
ingenious I think they'll accept. And they've earned it. Formed during 
World War II, this TI subsidiary has grown to become the Nation's eighth 
largest defense electronics contractor. And we know from the success of 
Desert Storm that in matters of advanced weaponry, quality is absolutely 
essential. It's the key. And we know, too, from the success of Desert 
Storm that TI's contributions to this effort were absolutely invaluable.
    In today's competitive global marketplace, quality of service and 
quality of goods takes on top priority in American business. And premium 
standards are no longer lofty goals but vital components of every basic 
business strategy. This year's Baldrige winners know that quality 
standards do not impede success, they encourage it. And Mac Baldrige 
would certainly agree with that.
    Each time we revisit our memories of Mac Baldrige at this ceremony, 
I'm reminded of the wisdom that he used to impart most often: Always, in 
anything and everything, rise to the highest standard. This year's 
Malcolm Baldrige Quality Award winners have all done just that.
    So I came over here to say congratulations to all of you. And may 
God bless our great country. Thank you very much.

                    Note: The President spoke at 11:52 a.m. at the 
                        Department of Commerce.